1. Foundations of Leadership Studies
Chapter 15
Leadership
Foundations of Leadership Studies

2. Inspirational Approaches to Leadership
Charismatic Leadership
Transactional leadership
Transformational Leadership

3. Charismatic leadership theory
Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors
People working for charismatic leaders are motivated to exert extra work effort and, because they like and respect their leaders, express greater satisfaction
Charisma leadership appears to be most appropriate when the followers’ task has a ideological component or when the environment involves a high degree of stress and uncertainty

4. Key Characteristics of Charismatic Leaders
Vision and articulation. Has a vision—expressed as an idealized goal—that proposes a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others.
Personal risk. Willing to take on high personal risk, incur high costs and engage in self-sacrifice to achieve the vision.
Environmental sensitivity. Able to make realistic assessments of the environmental constraints and resources needed to bring about change.
Sensitivity to follower needs. Perceptive of others’ abilities and responsive to their needs and feelings.
Unconventional behavior. Engages in behaviors that are perceived as novel and counter to norms.

5. Beyond Charismatic Leadership
Level 5 Leaders
Possess a fifth dimension—a paradoxical blend of personal humility and professional will—in addition to the four basic leadership qualities of individual capability, team skills, managerial competence, and the ability to stimulate others to high performance.
Channel their ego needs away from themselves and into the goal of building a great company.

6. Consequences of Charismatic Leadership
Positive and Negative Charismatics
Determined by examining the consequences for followers
Negative charismatics have a personalized power orientation
Positive charismatics have a socialized power orientation

7. Consequences of Charismatic Leadership The Dark Side of Charisma
Being in awe of the leader reduces good suggestions by followers
Desire for leader acceptance inhibits criticism by followers
Adoration by followers creates delusions about the leader
Excessive confidence and optimism blind the leader to real dangers
Denial of problems and failures reduces organizational learning

8. Consequences of Charismatic Leadership
Risky, grandiose projects are more likely to fail
Taking complete credit for successes alienates some key followers
Impulsive, nontraditional behavior creates enemies
Dependence on the leader inhibits development of competent successors
Failure to develop successors creates an eventual leadership crisis

9. Transactional and Transformational Leadership
Transformational leadership appeals to the moral values of followers to raise their consciousness and mobilize their energies
Transactional leadership motivates followers by appealing to their self-interest and exchanging benefits

10. Transactional Leaders
Contingent Reward
Management by Exception (active)
Management by Exception (passive)
Laissez-Faire
Transactional Leaders
Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.
Transformational Leaders
Leaders who provide the four “I’s” (individualized consideration, inspirational motivation, idealized influence, and intellectual stimulation)
Idealized Influence
Inspirational Motivation
Intellectual Stimulation
Individual Consideration

11. Characteristics of Transactional Leaders
Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.
Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action.
Management by Exception (passive): Intervenes only if standards are not met.
Laissez-Faire: abdicates responsibilities, avoids making decisions.

12. TRANSACTIONAL LEADERSHIP
KEEPS THE SYSTEM OPERATING SMOOTHLY
USES REWARD AND COERCIVE POWER BASES
RECOGNIZES WHAT WORKERS WANT & TRIES TO DELIVER IT
REWARDS ACCORDING TO WORKER EFFORT
RESPONSIVE TO WORKER SELF-INTERESTS

13. Characteristics of Transformational Leaders
Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust.
Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.
Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving.
Individualized Consideration: Gives personal attention, treats each employee individually, coaches, advises.

14. TRANSFORMATIONAL LEADERSHIP
INSPIRATIONAL, IDEA-ORIENTED, VISIONARY
DRAMATIC, AROUSES INTENSE FEELINGS
COMMUNICATES HIGH EXPECTATIONS & A NEED FOR CHANGE
UNPREDICTABLE
RELIES ON REFERENT OR CHARISMATIC POWER
RAISES LEVEL OF AWARENESS AND COMMITMENT
GETS FOLLOWERS TO TRANSCEND THEIR SELF-INTERESTS
REQUIRES TRUST AND BELIEF IN THE VISION PRESENTED
IS TRANSFORMATIONAL LEADERSHIP BUILT “ON TOP OF” TRANSACTIONAL LEADERSHIP, OR IS IT JUST A SPECIAL CASE OF CHARISMATIC LEADERSHIP?

15. Transformational Leadership
Facilitating Conditions
Some aspects of transformational leadership are relevant in most, if not all, situations
Dynamic, unstable environment that increases the need for change
Leaders are encouraged to be flexible and innovative
Follower traits and values

16. Guidelines for Transformational Leadership
Articulate a clear and appealing vision
Explain how the vision can be attained
Act confident and optimistic
Express confidence in followers
Use dramatic, symbolic actions to emphasize key values
Lead by example

17. Full Range of Leadership Model